4 Reasons Your Small Business Needs an Online Marketing Budget

by Barbara Beauregard
2/22/2016 10:26:11 AM

Your Small Business Needs Online Marketing… Here’s How to Get Started

Now, more than ever before, your potential customers are shopping for and researching information about products and services online. There’s tons of competition in the search engines, and having an online marketing budget and a plan is imperative to making sales from your online presence.

There’s more to it than just having a domain name, so keep reading to learn four reasons why you need an online marketing budget, plus actionable information about how to set your budget.

1. Your competitors have an online marketing budget

Savvy businesses know that online marketing can offer a substantial return on investment, so it’s very likely your competition already has an online marketing budget. You certainly can get away with low-cost online marketing strategies, but being willing to spend a bit can amplify your successes and fast-track results.

2. Most people search online before making a purchase

97% of all consumers do an online search before making a local purchase. Can your business afford to miss out on all of those opportunities? Probably not, which is why having the time and money for online marketing is so vital in today’s business environment.

3. There’s tons of competition on the Web

How much competition, exactly? Well, there are nearly 1 billion websites on the Internet, so it’s safe to assume that the competition is fierce. Getting found amongst all of this competition is a daunting task. You absolutely need to focus on online marketing if you want searchers to find you and your products or services.

4. If you hire an expert you’ll get help making tough decisions

If you’re too swamped to handle online marketing in your business, and you don’t have a staff member who can take on the task, consider hiring an outside person or agency. These experts will know exactly how to use your budget to get the most impact and you won’t have to spend time learning about and testing different techniques. Plus, these experts typically get better results faster than you could on your own.

How to create your online marketing budget

When it comes to online marketing costs vary widely, so you’ll need to determine what your needs are. Do you want to focus on Search Engine Optimization and Pay-per-Click advertising, for example? Well, what you need to spend will vary based on your industry and how competitive the online landscape is. Here’s some advice from the experts at Conversion Pipeline:

“Every industry and company is different, so you should adjust the percentages accordingly, based on your specific business plan. If your company is B2C, you should raise these numbers by 1-3% to see desired results. Most Pharmaceutical and Retail companies spend a significant amount more than the averages. These industries will generally spend around 20% of annual sales on marketing. Where companies focusing on sales only to a Government or business with a particular niche-market may deduct 1-2% from the above figures.”

Conversion Pipeline also states that surveys show that the average small business marketing budget is approximately 5% of total revenue. Other companies suggest 10% or more, but the ultimate goal is to establish a budget that you’re comfortable with and that also gets you results. If you aren’t sure what online marketing tasks you can complete with a limited budget, this list has some excellent tips for small business online marketing on a budget. Reading the list may even inspire you to carve out some cash for online marketing.





Additional Resources to Help Grow your Small Business

White Paper

How Mail Services Help Entrepreneurs Succeed

In today's mobile economy, digital entrepreneurs often work from varying locations. While this can help save money and increase agility, it comes with one big drawback:

Read More >
White Paper

Virtual Assistants Provide a Competitive Edge

Countless small business owners rely on remote assistants or offsite receptionists to help with critical organizational duties. While some are content to offload simple tasks to self-employed, stay-at-home support people, others demand more comprehensive services...NULL

Read More >
White Paper

Virtual Assistants & Remote Assistants: A Comparison

While the traditional virtual assistant is likely to work from home, an executive-level virtual assistant is part of a greater brick-and-mortar presence. This fundamental difference opens the door for extensive training opportunities that broaden the professional's support capabilities.

Read More >
White Paper

Overview of Virtual Offices, Executive Suites and Co-Working Spaces

Work has changed. In an age of instant communication, cloud-based applications, and workplace versatility, the era of the traditional office culture has come to an end. Providers of virtual offices, executive suites and co-working spaces have effectively liberated the nation’s work culture, adding dynamic and energizing new choices...

Read More >
White Paper

Part 1 of 4: Introducing the SBA

For entrepreneurs and small business owners, navigating the tricky terrain of creating a sound business plan, forecasting for growth and developing an operative growth strategy can be a major challenge. Fortunately, American entrepreneurs and operators have access to one of the most effective resources in the worldwide market...

Read More >
White Paper

Part 2 of 4: Starting a Small Business

Navigating the complex terrain of creating a sound business plan, forecasting for growth and developing an operative growth strategy can be a challenge for entrepreneurs and small business owners. Fortunately, American entrepreneurs have access to one of the most effective resources in the world via the Small Business Administration (SBA).
... Click to read more

Read More >
White Paper

Part 3 of 4: Managing a Small Business

Congratulations! You have gotten your small business up and running. Now what? This part of our four-part series on leveraging the Small Business Administration to help you launch and manage a small business will focus on the operational aspects of running a business. Whether you need leadership strategies, day-to-day decision making skills
... Click to read more

Read More >
White Paper

Part 4 of 4: Marketing, Sales and Contracting

Understanding marketing and sales as well as the technical complexity of our Internet-driven society gives entrepreneurs a distinct advantage over the competition. This final segment of our four-part report will take a deeper dive into the logistics and philosophy of marketing and sales and their impact on your business success.
... Click to read more

Read More >
White Paper

DIY Marketing Tools

If a business isn’t marketing, its potential customers are not finding it. Small to medium size businesses often struggle with spending hundreds of thousands of dollars on marketing. New DIY marketing tools, however, have eliminated the need to spend astronomical amounts on online and traditional marketing. These tools
... Click to read more

Read More >
White Paper

Virtual Office for Legal Professionals

Law firms (large and small) and solo legal practitioners alike can use virtual office services and spaces to run their entire legal operations or as a supplement to a home office or traditional brick-and-mortar offices. Virtual office services can be particularly useful during trial preparation
... Click to read more

Read More >
White Paper

Finance & Tax Professionals

Finance and tax professionals, whether they work solo or as part of a larger firm, can use virtual office spaces and services to stay on top of their workloads, especially during the busy tax season. Professional virtual office spaces can be particularly useful when back-to-back client meetings are necessary...

Read More >
White Paper

Traveling Entrepreneur

As business people and entrepreneurs continually strive to grow their business, doing so frequently involves traveling around the country to attend networking or tradeshow events, meeting clients and prospects on their own turf, and getting some face-time with colleagues, contractors or employees who may operate in a remote location. Preparation
... Click to read more

Read More >
White Paper

Virtual Office Eguide

Have you ever wondered why some small businesses are successful and others are not and what do these successful companies do to gain an edge over their competition? Through our years of experience
... Click to read more

Read More >